SIE Understanding Trading, Customer Accounts and Prohibited Activities Question 38: Answer and Explanation

Question: 38

Which of the following is determined by the rules of the exchange on which the stock is traded?

• A. Record date
• B. Payment date
• C. Declaration date
• D. Ex-dividend date or ex-date

Correct Answer: D

Explanation:

D: Choice D is correct because the exchange's rules determine when the stock begins to trade without a right to the dividend. Choices A, B, and C are incorrect because these dates determined by the board of directors of the company that issued the stock.